TaxTMI 
TaxTMI 
Scope of Job Work and Manpower supply services - Applicability of service tax on the services received by apparel exporters in relation to fabrication of garments
X X X X Extracts X X X X
X X X X Extracts X X X X
....x Research Unit) Dated- 15^th December, 2015 To, Principal Chief Commissioners of Customs and Central Excise(All) Principal Chief Commissioners of Central Excise & Service Tax (All) Principal Director Generals of Goods and Service Tax/System/CEI Director General of Audit/Tax Payer Services, Principal Commissioners/ Commissioners of Customs and Cen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecifically exempt. However, trade is of the view that the services received by them is of job work involving a process amounting to manufacture or production of goods, and thus would fall under negative list [section 66D (f)] and hence would not attract service tax. 2. The matter has been examined. The nature of manpower supply service is quite distinct from the service of job work. The e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....untable for the job he undertakes. It is for the service provider to decide how he deploys and uses his manpower. Service recipient is concerned only as regard the job work. In other words service receiver is not concerned about the manpower. The value of service is function of quantum of job work undertaken, i.e. number of pieces fabricated etc. It is immaterial as to whether the job worker under....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eiver; d. Value of service is payable on per piece basis, depending upon item and style; e. Service provider is liable to compensate the service recipient if the work is not as per the standard norm; f. In case the work is executed by service provider at the site of service recipient, the service provider would indemnify the service receiver of any loss to inputs and inf....